American Airlines Stock to Report Q2 Earnings: What's in the Cards?
AAL
) is scheduled to report second-quarter 2025 results on July 24, before market open.
American Airlines has an encouraging earnings surprise history. The company's earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 46.11%.
Let's see how things have shaped up for American Airlines this earnings season.
Factors Likely to Have Influenced AAL's Q2 Performance
The Zacks Consensus Estimate for AAL's second-quarter 2025 earnings has been revised upward by 2.60% in the past 60 days to 79 cents per share. However, the consensus mark implies a 27.52% downside from the year-ago actual. The consensus estimate lies within the company-provided guided range of 50 cents-$1.00.
We expect geopolitical uncertainty, tariff-related pressures, and persistent inflation to weigh on AAL's operations and weaken travel demand. The ongoing economic uncertainties and the resultant reduction in consumer and corporate confidence are likely to have hurt the domestic air travel demand.
Escalated labor and airport costs are also likely to have been high, which would have hurt the company's bottom-line performance in the June quarter. Despite costs on aircraft fuel decreasing year over year (down 12.8% in second-quarter 2025, as per our model), AAL expects to continue experiencing increased cost pressure from the labor agreements and deals inked with the pilots. We expect operating costs to increase 1.4% in second-quarter 2025 from second-quarter 2024 actuals, led by the 6.8% rise in salaries and related costs.
For the second quarter of 2025, management expects total revenues to be down 2% to up 1% from the second quarter of 2024 actuals. The Zacks Consensus Estimate for AAL's second-quarter 2025 revenues is pegged at $14.29 billion, indicating a 0.3% decline year over year. The downside is likely to have been partially offset by improving travel demand and lower fuel prices.
Notably, the southward movement of oil prices bodes well for the bottom-line growth of industry participants. This is because fuel expenses are a significant input cost for the aviation industry. Crude oil is struggling in 2025, with prices sliding to multi-month lows. Tariff concerns, weakening consumer confidence, and the production increase by OPEC+ have all contributed to this downward pressure. Oil prices decreased 6% in the April-June 2025 period.
What Our Model Says About AAL
Our proven model does not conclusively predict an earnings beat for American Airlines this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that's not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
American Airlines has an Earnings ESP of -0.18% and a Zacks Rank #3 at present.
American Airlines Group Inc. Price and EPS Surprise
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Highlights of AAL's Q1 Earnings
American Airlines' first-quarter 2025 loss (excluding 13 cents from non-recurring items) of 59 cents per share was narrower than the Zacks Consensus Estimate of a loss of 69 cents. In the year-ago quarter, AAL reported a loss of 34 cents per share. Operating revenues of $12.55 billion edged past the Zacks Consensus Estimate of $12.52 billion but decreased 0.2% year over year.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
SkyWest, Inc. SKYW has an Earnings ESP of +3.06% and a Zacks Rank #2 at present. SKYW is scheduled to report second-quarter 2025 earnings on July 24. You can see the complete list of today's Zacks #1 Rank stocks here.
SkyWest, founded in 1972, is based in St. George and operates regional jets for major U.S. airlines. SKYW is the holding company for SkyWest Airlines, SkyWest Charter and SkyWest Leasing, an aircraft leasing company.
SKYW has an impressive earnings surprise track record, having surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 17.1%. The Zacks Consensus Estimate for SKYW's second-quarter 2025 earnings has been revised 1.30% upward in the past 60 days. SKYW's second-quarter 2025 earnings are expected to grow 28.5% year over year.
Knight-Swift Transportation Holdings Inc. (
KNX
) has an Earnings ESP of +3.22% and a Zacks Rank #3 at present. KNX is scheduled to report second-quarter 2025 earnings on July 23.
KNX's second-quarter 2025 earnings are expected to grow 41.67% year over year. The Zacks Consensus Estimate for KNX's second-quarter 2025 earnings has been revised downward by 2.86% to 34 cents per share in the past 60 days. KNX's earnings beat the Zacks Consensus Estimate in three of the preceding four quarters (missed the mark in the remaining quarter), the average beat being 3.25%.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Knight-Swift Transportation Holdings Inc. (KNX): Free Stock Analysis Report
SkyWest, Inc. (SKYW): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
30 minutes ago
- Globe and Mail
Tevogen.AI Expands Collaboration With Databricks and Microsoft to Build the Beta Version of Its PredicTcell™ Model With a Focus on Oncology
to explore external market opportunities as a potential revenue source. Beta version to incorporate oncology targets, enhancing the accuracy and diversity of the PredicTcell model and potentially accelerating cancer immunotherapy development. to develop enhanced analytics and visualization tools, for the PredicTcell model to support its internal R&D teams. WARREN, N.J., Aug. 05, 2025 (GLOBE NEWSWIRE) -- Tevogen ('Tevogen Bio Holdings Inc.' or 'Company') (Nasdaq: TVGN) today announced that its artificial intelligence initiative, is expanding its collaboration with Microsoft (Nasdaq: MSFT) and Databricks, to build the beta version of its foundational PredicTcell model. Powered by the Databricks Data Intelligence Platform and backed by their innovative engineering teams, has begun curating a dataset focused on oncology. The dataset, aggregated with the initial virology dataset. aims to improve upon the accuracy of the alpha version of PredicTcell model. This next phase of development builds on recently published international patent application (WO 2025/129197), which outlines novel machine learning systems for predicting immunologically active peptides, a critical step in developing targeted therapies for cancers and infectious diseases. 'We have been extremely fortunate to work with such great organizations like Microsoft and Databricks to build the alpha version of our foundational AI model,' said Mittul Mehta, Chief Information Officer and Head of 'Oncology represents one of the most impactful areas for AI in drug discovery, given the complexity of the disease and the limited availability of high-quality datasets.' Forward Looking Statements This press release contains certain forward-looking statements, including without limitation statements relating to: Tevogen's plans for its research and manufacturing capabilities; expectations regarding future growth; expectations regarding the healthcare and biopharmaceutical industries; and Tevogen's development of, the potential benefits of, and patient access to its product candidates for the treatment of infectious diseases and cancer. Forward-looking statements can sometimes be identified by words such as 'may,' 'could,' 'would,' 'expect,' 'anticipate,' 'possible,' 'potential,' 'goal,' 'opportunity,' 'project,' 'believe,' 'future,' and similar words and expressions or their opposites. These statements are based on management's expectations, assumptions, estimates, projections and beliefs as of the date of this press release and are subject to a number of factors that involve known and unknown risks, delays, uncertainties and other factors not under the company's control that may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations expressed or implied by these forward-looking statements. Factors that could cause actual results, performance, or achievements to differ from those expressed or implied by forward-looking statements include, but are not limited to: that Tevogen will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; changes in the markets in which Tevogen competes, including with respect to its competitive landscape, technology evolution, or regulatory changes; changes in domestic and global general economic conditions; the risk that Tevogen may not be able to execute its growth strategies or may experience difficulties in managing its growth and expanding operations; the risk that Tevogen may not be able to develop and maintain effective internal controls; the failure to achieve Tevogen's commercialization and development plans and identify and realize additional opportunities, which may be affected by, among other things, competition, the ability of Tevogen to grow and manage growth economically and hire and retain key employees; the risk that Tevogen may fail to keep pace with rapid technological developments to provide new and innovative products and services or make substantial investments in unsuccessful new products and services; risks related to the ability to develop, license or acquire new therapeutics; the risk of regulatory lawsuits or proceedings relating to Tevogen's business; uncertainties inherent in the execution, cost, and completion of preclinical studies and clinical trials; risks related to regulatory review, approval and commercial development; risks associated with intellectual property protection; Tevogen's limited operating history; and those factors discussed or incorporated by reference in Tevogen's Annual Report on Form 10-K. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Tevogen undertakes no obligation to update any forward-looking statements, except as required by applicable law.
Globe and Mail
30 minutes ago
- Globe and Mail
5 Reasons to Buy D-Wave Stock Like There's No Tomorrow
D-Wave (NYSE: QBTS) is up 120% in 2025, driven by momentum involving its Advantage2 system and a major capital raise. But with negative cash flow and dilution concerns, is it the next tech rocket or a risky bet? I'll break down the facts so you can decide before Wall Street catches up. *Stock prices used were the market prices of Aug. 4, 2025. The video was published on Aug. 5, 2025. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,039%* — a market-crushing outperformance compared to 181% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025 Rick Orford has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Globe and Mail
30 minutes ago
- Globe and Mail
The 3 Best Warren Buffett Stocks to Buy Right Now
Key Points You can find wealth-building investments by perusing Berkshire Hathaway's well-stocked portfolio. Three of Buffett's most defensive stocks are particularly attractive buys today. 10 stocks we like better than Berkshire Hathaway › All good things must come to an end. After six decades generating fortunes for Berkshire Hathaway 's (NYSE: BRK.A)(NYSE: BRK.B) shareholders, Warren Buffett will soon relinquish his role as CEO of the trillion-dollar masterpiece of American capitalism he helped build. Fortunately, Buffett plans to remain chairman of Berkshire's Board of Directors and continue to help guide the company's major investment decisions. Better still, the legendary financier's best ideas continue to comprise the lion's share of the conglomerate's public stock holdings, currently valued at a staggering $280 billion. If you'd like to profit alongside Buffett, here are some of Berkshire's best stocks for today's turbulent economic environment. 1. Kroger When people pinch pennies, they dine out less and dine in more. The eat-from-home trend is a boon for Kroger (NYSE: KR), the largest pure play grocery chain in the U.S. With over 2,700 stores and roughly $150,000 billion in annual revenue, Kroger's impressive scale provides it with significant advantages over its smaller rivals. The grocery giant's purchasing power gives it an edge in pricing that cash-strapped consumers appreciate. Kroger can also afford to invest more aggressively in technology, which helped to fuel a 15% jump in the company's digital sales in the first quarter. All told, Kroger is the type of investment that will allow you to sleep easily at night while you own it. People need to eat, and the grocery leader's defensive business model generates consistent profits across economic cycles. Moreover, Kroger's bountiful free cash flow -- which management expects to climb as high as $3 billion in 2025 -- supports a steadily growing dividend and sizable share repurchases. These cash returns should continue to drive Kroger's stock price higher in the coming years. KR data by YCharts. 2. Coca-Cola Long-time Buffett favorite Coca-Cola (NYSE: KO) is another reliable dividend stock to consider adding to your diversified investment portfolio. The beverage colossus has increased its cash payments to shareholders for an extraordinary 63 consecutive years. If you're worried about Coca-Cola's reliance on sugary soda sales, fear not. The beverage king has worked to broaden its offerings to include healthier fare like milk, tea, and bottled water. Strong sales of high-protein drinks under the company's popular Fairlife brand are a notable growth driver. Coca-Cola Zero Sugar and other sugar-free drinks also remain top sellers among health-conscious consumers. Coca-Cola's diversified product lineup and strong free-cash-flow generation make it one of the most dependable dividend payers available in the stock market today. Buffett's beloved beverage maker is currently offering you a solid 3% yield. 3. Berkshire Hathaway The most defensive and safest business of all, however, may just be Berkshire Hathaway itself. Buffett's financial fortress is sitting on a massive cash stash of more than $340 billion just waiting to be deployed in value-creating investments on behalf of its shareowners. Berkshire's huge cash reserves enable it to pounce on profit opportunities as they arise. This typically occurs during volatile times. Buffett fans know this, which is one of the reasons why Berkshire's stock tends to outperform during bear markets. The megaconglomerate's diverse business segments further help to reduce the risks for investors. Berkshire owns more than 60 operating subsidiaries in areas as far-ranging as railroads, car insurance, ice cream, and underwear. BNSF Railway, GEICO, Dairy Queen, and Fruit of the Loom are just a small sample of Berkshire's assorted holdings. Together, these businesses cranked out over $10 billion in operating cash flow in Q1 alone. Although Buffett is stepping down as CEO at the end of 2025, he's handing over the reins to his hand-picked successor, Greg Abel. The longtime Berkshire executive isn't expected to rock the boat, as he's already overseeing many of the company's most important businesses. And the limited number of changes expected to come under Abel's leadership could prove beneficial. For example, Abel might be more aggressive with selling off Berkshire's few underperforming assets, such as its multibillion-dollar stake in Kraft Heinz. That could further swell the investment giant's already enormous cash reserves, thereby giving Berkshire even more capital to deploy during the next market downturn. Should you invest $1,000 in Berkshire Hathaway right now? Before you buy stock in Berkshire Hathaway, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $631,505!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,103,313!* Now, it's worth noting Stock Advisor's total average return is 1,039% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025
